Purchasing activity in the US import wire rod market is still relatively muted, and sources say it will continue as long as the tariff situation is mired in uncertainty. But Brazil, which recently struck a deal with the US to replace tariffs with an annual import quota, has taken advantage of its newfound relative stability and increased wire rod offer prices to the US by a moderate amount.
Offers for imported wire rod in the US domestic market from Brazil are now reportedly around $33.50-$35.50 cwt. ($670-$710/nt or $739-$783/mt) DDP loaded truck in US Gulf ports, reflecting an increase of $0.50 cwt. ($10/nt or $11/mt) in the last week.
Sources tell SteelOrbis that import wire rod offers to the US have “room to increase further” given the aggressive push for higher US domestic wire rod prices by US mills. While sources are skeptical that the latest US domestic wire rod price increase will be fully absorbed into the market, spot prices have finally hit the $40.00 cwt. ($800/nt or $882/mt) level on the upper end of the current domestic price range, which means import sources have “a lot of flexibility” when it comes to gradually raising offers.